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The new product allows established self-employed customers to verify their income using six months of ATO Business Activity Statements, targeting borrowers who have a strong credit profile but may not meet traditional documentation requirements.
Rates start at 6.99 per cent for an owner-occupied loan at 70 per cent LVR with principal and interest repayments.
The product is available to both home buyers and investors, with variable and fixed rates, interest-only repayments and an optional offset account.
Firstmac chief commercial officer Marie Mortimer said the lender was targeting established borrowers who had previously faced limited options and higher interest rates.
“We’re targeting established, high-quality self-employed customers who have been operating their business for at least two years and have a strong credit profile,” Mortimer said.
“These customers can find themselves paying substantially higher interest rates. We’re giving brokers a new way to help these customers, with competitive pricing that reflects their credit quality.”
Mortimer added that the product would focus on the higher-quality end of the alt-doc market.
“We’re not looking to compete across the entire alt-doc market. We’re specifically targeting the premium end, where borrowers have strong credit credentials but don’t quite meet traditional documentation requirements,” she said.
“We recognise that self-employed borrowers manage their finances differently to PAYG employees. This product gives brokers another way to support good customers without forcing them into a higher-priced lending solution simply because their income is evidenced differently.”
Firstmac also said the launch is also intended to provide more flexibility to retain self-employed customers within Firstmac’s lending range.
“For brokers, it’s about having another competitive option for a good customer,” Mortimer said.
“We want brokers to be able to support more of their self-employed clients with competitive pricing while maintaining the credit standards and service they expect from Firstmac.”
The new product forms part of a broader expansion of Firstmac’s lending range, which includes enhancements to construction, bridging, vacant land and automotive finance offerings.
Firstmac will maintain a conservative credit approach, with alt-doc loans funded separately through its Eagle residential mortgage-backed securities (RMBS) program rather than its Benchmark prime RMBS program.
Recently, the back of the non-bank lender announced an enhanced bridging loan, which gives borrowers up to 12 months to sell their existing property, alongside expanded postcode eligibility, lower fees, improved broker compensation and greater flexibility in how borrowing capacity is assessed.
[Related: Bank Australia launches personal loan for home electrification]
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